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Cigna Q2 Earnings Beat Estimates on Higher Specialty Volumes
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Key Takeaways
CI posted Q2 adjusted EPS of $7.20, up 7.1% and ahead of estimates by 0.8%, on $67.1B in revenues.
Evernorth's 17% revenue growth to $57.8B boosted results, aided by specialty and pharmacy volume gains.
Cigna's medical customer base fell 5.2% due to divestitures.
The Cigna Group (CI - Free Report) reported second-quarter 2025 adjusted earnings per share (EPS) of $7.20, which beat the Zacks Consensus Estimate by 0.8%. The bottom line advanced 7.1% year over year.
Adjusted revenues of $67.1 billion rose 11% year over year. The top line outpaced the consensus mark by 7.1%.
The quarterly results benefited on the back of strong results from its Evernorth Health Services segment, driven by new business, Pharmacy Benefit Services strength and improved specialty volumes. However, the upside was partly offset by a decline in medical customers following divestitures to Health Care Services Corporation ("HCSC") and an elevated expense level.
Cigna’s medical customer base came in at 18 million as of June 30, 2025, which declined 5.2% year over year but outpaced the Zacks Consensus Estimate of 17.9 million. The metric was affected due to the sale of its Medicare Advantage, Medicare Individual Stand-Alone Prescription Drug Plans, Medicare and Other Supplemental Benefits, and CareAllies businesses to HCSC.
Total benefits and expenses increased 12% year over year to $64.9 billion in the quarter under review due to higher pharmacy and other service costs. The adjusted SG&A expense ratio of 4.9% improved 110 basis points (bps) year over year, resulting from a shift in business mix and higher revenues.
Adjusted income from operations totaled $1.9 billion, which inched up 1% year over year on the back of a well-performing Evernorth Health Services unit.
Cigna’s Segmental Update
Evernorth Health Services: The unit recorded adjusted revenues of $57.8 billion in the second quarter, which advanced 17% year over year and surpassed the Zacks Consensus Estimate of $54.4 billion. The metric benefited on the back of new business growth and expanding client relationships in Pharmacy Benefit Services, coupled with improved specialty volumes in Specialty and Care Services.
Adjusted operating income, on a pre-tax basis, rose 5% year over year to $1.7 billion and marginally beat the consensus mark of $1.67 billion. The metric was aided by consistent affordability improvements and organic growth in specialty businesses. However, the adjusted pre-tax margin of 2.9% deteriorated 40 bps year over year.
Cigna Healthcare: The segment’s adjusted revenues of $10.8 billion tumbled 18% year over year in the quarter under review but marginally beat the Zacks Consensus Estimate of $10.78 billion. The metric suffered due to the HCSC transaction.
Pre-tax adjusted operating income dropped 9% year over year to $1.1 billion but came higher than the consensus mark of $1.07 billion. The metric was impacted due to a deteriorating medical care ratio (MCR).
MCR came in at 83.2% at the second-quarter end, which deteriorated 90 bps year over year due to elevated stop-loss medical costs.
Cigna’s Financial Position (As of June 30, 2025)
Cigna exited the second quarter with cash and cash equivalents of $4.3 billion, which plunged 42.7% from the 2024-end level. Total assets of $151.7 billion slipped 2.7% from the figure at 2024-end.
Long-term debt amounted to $26.5 billion, down 8.5% from the figure as of Dec. 31, 2024. Short-term debt totaled $4.3 billion.
Total equity of $40.4 billion dipped 2% from the 2024-end level.
Cigna generated operating cash flows of $34 million in the first half of 2025, which fell significantly from the prior-year comparable period.
Cigna’s Capital Deployment Update
Cigna bought back shares worth around $2.6 billion in the first half of 2025.
Cigna’s 2025 Outlook
Adjusted EPS is reiterated at a minimum of $29.60, which indicates growth of at least 8.3% from the 2024 figure.
MCR is still projected in the band of 83.2-84.2%.
Adjusted operating income, on a pre-tax basis, for the Evernorth Health Services segment is continued to be anticipated to be a minimum of $7.2 billion.
Meanwhile, the metric for the Cigna Healthcare unit is still forecasted to be a minimum of $4.125 billion.
Adjusted revenues were earlier forecasted at a minimum of $252 billion, which indicates an improvement of at least 2% from the 2024 figure.
Adjusted operating income was earlier anticipated to be a minimum of $7.9 billion, which indicates growth of at least 2.1% from the 2024 figure.
Operating cash flow was forecasted at around $10 billion. Capital expenditures were earlier expected to be around $1.4 billion.
Cigna earlier expected total medical customers to be roughly 18.1 million.
The adjusted SG&A expense ratio was earlier estimated at around 5.4%.
Of the Medical sector players that have reported second-quarter 2025 results so far, the bottom-line results of Universal Health Services, Inc. (UHS - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and The Ensign Group, Inc. (ENSG - Free Report) beat the respective Zacks Consensus Estimate.
Universal Health Services reported second-quarter 2025 adjusted EPS of $5.35, which beat the Zacks Consensus Estimate by 10.3%. The bottom line climbed 24.1% year over year. Net revenues advanced 9.6% year over year to nearly $4.3 billion. The top line surpassed the consensus mark by 1.5%. Adjusted EBITDA, net of NCI, was $642.9 million, which improved 11.1% year over year.
In the Acute Care Hospital Services segment, adjusted admissions (adjusted for outpatient activity) rose 2% on a same-facility basis. Net revenues stemming from Universal Health’s acute care services advanced 7.9% on a same-facility basis. In the Behavioral Health Care Services unit, adjusted admissions increased 0.4% on a same-facility basis in the quarter. Net revenues derived from UHS’ behavioral healthcare services increased 8.9% on a same-facility basis.
Thermo Fisher Scientific’s second-quarter 2025 adjusted EPS of $5.36 beat the Zacks Consensus Estimate by 2.7%. However, the figure decreased 0.2% year over year. Revenues in the quarter increased 2.9% year over year to $10.85 billion. Moreover, the top line surpassed the Zacks Consensus Estimate by 1.9%. Organic revenues in the reported quarter increased 2% year over year.
Revenues in the Life Sciences Solutions segment (23% of total revenues) increased 6.1% year over year to $2.50 billion. Revenues in the Analytical Instruments segment (15.9%) declined 3% year over year to $1.73 billion. Revenues in the Specialty Diagnostics segment (10.4%) increased 1.5% year over year to $1.13 billion. In the Laboratory Products and Biopharma Services unit, revenues (55.2%) rose 4.1% year over year to $5.99 billion. The adjusted operating margin in the quarter was 21.6%, reflecting a contraction of 124 bps.
Ensign Group reported second-quarter 2025 adjusted EPS of $1.59, which beat the Zacks Consensus Estimate by 3.3%. The bottom line improved 20.5% year over year. Operating revenues advanced 18.5% year over year to $1.2 billion. The top line surpassed the consensus mark by 1.8%. Ensign Group’s adjusted net income of $93.3 million rose 22.1% year over year in the quarter under review.
Same-facilities occupancy improved 160 basis points (bps) while transitioning-facilities occupancy increased 370 bps year over year. The Skilled Services segment’s revenues were $1.17 billion in the second quarter, which grew 18.4% year over year. Segment income of $150 million advanced 22.8% year over year. In the Standard Bearer unit, rental revenues climbed 34.7% year over year to $31.5 million in the quarter under review. Funds from operations were $18.4 million, which increased 26.6% year over year.
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Cigna Q2 Earnings Beat Estimates on Higher Specialty Volumes
Key Takeaways
The Cigna Group (CI - Free Report) reported second-quarter 2025 adjusted earnings per share (EPS) of $7.20, which beat the Zacks Consensus Estimate by 0.8%. The bottom line advanced 7.1% year over year.
Adjusted revenues of $67.1 billion rose 11% year over year. The top line outpaced the consensus mark by 7.1%.
The quarterly results benefited on the back of strong results from its Evernorth Health Services segment, driven by new business, Pharmacy Benefit Services strength and improved specialty volumes. However, the upside was partly offset by a decline in medical customers following divestitures to Health Care Services Corporation ("HCSC") and an elevated expense level.
The Cigna Group Price, Consensus and EPS Surprise
The Cigna Group price-consensus-eps-surprise-chart | The Cigna Group Quote
CI’s Q2 Performance
Cigna’s medical customer base came in at 18 million as of June 30, 2025, which declined 5.2% year over year but outpaced the Zacks Consensus Estimate of 17.9 million. The metric was affected due to the sale of its Medicare Advantage, Medicare Individual Stand-Alone Prescription Drug Plans, Medicare and Other Supplemental Benefits, and CareAllies businesses to HCSC.
Total benefits and expenses increased 12% year over year to $64.9 billion in the quarter under review due to higher pharmacy and other service costs. The adjusted SG&A expense ratio of 4.9% improved 110 basis points (bps) year over year, resulting from a shift in business mix and higher revenues.
Adjusted income from operations totaled $1.9 billion, which inched up 1% year over year on the back of a well-performing Evernorth Health Services unit.
Cigna’s Segmental Update
Evernorth Health Services: The unit recorded adjusted revenues of $57.8 billion in the second quarter, which advanced 17% year over year and surpassed the Zacks Consensus Estimate of $54.4 billion. The metric benefited on the back of new business growth and expanding client relationships in Pharmacy Benefit Services, coupled with improved specialty volumes in Specialty and Care Services.
Adjusted operating income, on a pre-tax basis, rose 5% year over year to $1.7 billion and marginally beat the consensus mark of $1.67 billion. The metric was aided by consistent affordability improvements and organic growth in specialty businesses. However, the adjusted pre-tax margin of 2.9% deteriorated 40 bps year over year.
Cigna Healthcare: The segment’s adjusted revenues of $10.8 billion tumbled 18% year over year in the quarter under review but marginally beat the Zacks Consensus Estimate of $10.78 billion. The metric suffered due to the HCSC transaction.
Pre-tax adjusted operating income dropped 9% year over year to $1.1 billion but came higher than the consensus mark of $1.07 billion. The metric was impacted due to a deteriorating medical care ratio (MCR).
MCR came in at 83.2% at the second-quarter end, which deteriorated 90 bps year over year due to elevated stop-loss medical costs.
Cigna’s Financial Position (As of June 30, 2025)
Cigna exited the second quarter with cash and cash equivalents of $4.3 billion, which plunged 42.7% from the 2024-end level. Total assets of $151.7 billion slipped 2.7% from the figure at 2024-end.
Long-term debt amounted to $26.5 billion, down 8.5% from the figure as of Dec. 31, 2024. Short-term debt totaled $4.3 billion.
Total equity of $40.4 billion dipped 2% from the 2024-end level.
Cigna generated operating cash flows of $34 million in the first half of 2025, which fell significantly from the prior-year comparable period.
Cigna’s Capital Deployment Update
Cigna bought back shares worth around $2.6 billion in the first half of 2025.
Cigna’s 2025 Outlook
Adjusted EPS is reiterated at a minimum of $29.60, which indicates growth of at least 8.3% from the 2024 figure.
MCR is still projected in the band of 83.2-84.2%.
Adjusted operating income, on a pre-tax basis, for the Evernorth Health Services segment is continued to be anticipated to be a minimum of $7.2 billion.
Meanwhile, the metric for the Cigna Healthcare unit is still forecasted to be a minimum of $4.125 billion.
Adjusted revenues were earlier forecasted at a minimum of $252 billion, which indicates an improvement of at least 2% from the 2024 figure.
Adjusted operating income was earlier anticipated to be a minimum of $7.9 billion, which indicates growth of at least 2.1% from the 2024 figure.
Operating cash flow was forecasted at around $10 billion. Capital expenditures were earlier expected to be around $1.4 billion.
Cigna earlier expected total medical customers to be roughly 18.1 million.
The adjusted SG&A expense ratio was earlier estimated at around 5.4%.
CI’s Zacks Rank
Cigna currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Of the Medical sector players that have reported second-quarter 2025 results so far, the bottom-line results of Universal Health Services, Inc. (UHS - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and The Ensign Group, Inc. (ENSG - Free Report) beat the respective Zacks Consensus Estimate.
Universal Health Services reported second-quarter 2025 adjusted EPS of $5.35, which beat the Zacks Consensus Estimate by 10.3%. The bottom line climbed 24.1% year over year. Net revenues advanced 9.6% year over year to nearly $4.3 billion. The top line surpassed the consensus mark by 1.5%. Adjusted EBITDA, net of NCI, was $642.9 million, which improved 11.1% year over year.
In the Acute Care Hospital Services segment, adjusted admissions (adjusted for outpatient activity) rose 2% on a same-facility basis. Net revenues stemming from Universal Health’s acute care services advanced 7.9% on a same-facility basis. In the Behavioral Health Care Services unit, adjusted admissions increased 0.4% on a same-facility basis in the quarter. Net revenues derived from UHS’ behavioral healthcare services increased 8.9% on a same-facility basis.
Thermo Fisher Scientific’s second-quarter 2025 adjusted EPS of $5.36 beat the Zacks Consensus Estimate by 2.7%. However, the figure decreased 0.2% year over year. Revenues in the quarter increased 2.9% year over year to $10.85 billion. Moreover, the top line surpassed the Zacks Consensus Estimate by 1.9%. Organic revenues in the reported quarter increased 2% year over year.
Revenues in the Life Sciences Solutions segment (23% of total revenues) increased 6.1% year over year to $2.50 billion. Revenues in the Analytical Instruments segment (15.9%) declined 3% year over year to $1.73 billion. Revenues in the Specialty Diagnostics segment (10.4%) increased 1.5% year over year to $1.13 billion. In the Laboratory Products and Biopharma Services unit, revenues (55.2%) rose 4.1% year over year to $5.99 billion. The adjusted operating margin in the quarter was 21.6%, reflecting a contraction of 124 bps.
Ensign Group reported second-quarter 2025 adjusted EPS of $1.59, which beat the Zacks Consensus Estimate by 3.3%. The bottom line improved 20.5% year over year. Operating revenues advanced 18.5% year over year to $1.2 billion. The top line surpassed the consensus mark by 1.8%. Ensign Group’s adjusted net income of $93.3 million rose 22.1% year over year in the quarter under review.
Same-facilities occupancy improved 160 basis points (bps) while transitioning-facilities occupancy increased 370 bps year over year. The Skilled Services segment’s revenues were $1.17 billion in the second quarter, which grew 18.4% year over year. Segment income of $150 million advanced 22.8% year over year. In the Standard Bearer unit, rental revenues climbed 34.7% year over year to $31.5 million in the quarter under review. Funds from operations were $18.4 million, which increased 26.6% year over year.